Which of the following analysis is included in the financial statement analysis of a company?

A) Comparative statements
B) Common size statements
C) Trend analysis
D) Ratio analysis

Choose the correct answer from the options given below.

ABCD

The correct answer is option 2- ABCD.

Comparative Statements (Horizontal Analysis): This technique involves preparing financial statements, such as the balance sheet and income statement, for multiple periods in a comparative form. By presenting data from different periods side by side, it allows for an easy comparison of the company's performance and financial position over time.

Common Size Statements (Vertical Analysis): In this approach, each item on the financial statement is expressed as a percentage of a common base, typically a key figure such as total revenue or total assets. By using percentages, it becomes easier to compare the relative proportions of different items within a single period or between different companies.

Trend Analysis: This technique involves studying the financial performance and position of a company over several years. By using historical data, trend analysis helps identify patterns, tendencies, and changes in financial ratios and figures over time.It assumed any year as base year. It allows analysts to observe the percentage changes in selected data and helps in understanding the long-term performance of a business. Trend analysis can provide insights into potential shifts in the company's strategy, market conditions, and overall financial health.

Ratio analysis- It is a relationship between two term. It shows the liquidity,solvency, turnover and profitability information about the company.